The Journal Times from Racine, Wisconsin • 4

nn 5A. listings uuvj page editor: Joanne M. Haas i i THE JOURNAL TIMES PAGE 4A WEDNESDAY, OCTOBER 22, 1997 o) 0) BUSINESS TODA Downswing's darkest days fading Citicorp work fl force cuts The nation's second-largest banking business is eliminating 7,500 of some 90,000 jobs worldwide over the next 12-18 months. Nationwide survey shows long day's journey ends with a rise in hirings Downsizing decline Job elimination and downsizing dropped to their lowest levels of tfie "90s as major U.S. firms created twice as many jobs as they cut In the 12 months ending In June 1997.

Job elimination Percentage of companies reporting Job elimination 555 a Ml 692 693 694 695 696 697 Downsizing Percentage of net decrease In the workforce 432 306 306 DDDD r-i 1O0 691 692 693 684 695 696 697 Source: Energy Information Administration AP ing, Greenberg noted. For instance, while a new automation system may have prompted the layoffs of less-skilled workers initially, the wider use of automation now demands the hiring of workers with more skills. Technical advances have prompted Xerox, for example, to add 4,000 jobs in the last two years, after cutting 12,000 jobs from 1993 to 1995 from a work force of 97,000. Nationwide, 32 percent of jobs cut in the past year were managers and supervisors, while only 14 percent were professionals and technicians, according to the survey, which focused on companies with revenues of $10 million or more. It had a margin of error of plus or minus 3.5 percentage points.

Even companies that have been in the headlines with announcements of job cuts are still quietly hiring. a company practically synonymous with downsizing after its job cuts of the 1990s, has hired 3,000 workers since the end of 1996. on cost-control, cost-reduction and staff-reduction," Eric Rolfe Greenberg, director of management studies at the New York-based association, said. "Ultimately, companies found that there was more to doing business than cutting costs." The sweeping job cuts of recent years left few workers unaffected. Nearly 40 percent of companies cut jobs in three or more years since 1990, according to the survey.

The changes left even surviving workers with a sense of insecurity as well as mounting work loads. But things are looking up. Companies reporting job cuts have shrunk to 41 percent this year from 56 percent in 1991, the management association reported. Companies that downsized or decreased their total work force fell to 19 percent from 43 percent in the same periods. Some of the same forces spurring job cuts reengineering and automation now are causing hir NEW YORK (AP) After years of widespread layoffs, downsizing and job cuts are at their lowest levels this decade, with companies once again hiring, a nationwide survey released Tuesday says.

That's not to say all jobs are safe. Thirteen percent of the 1,200 companies surveyed by the American Management Association are firing workers, and a third of companies are both firing and hiring. Underscoring the fact that downsiz-ings are hardly a thing of the past, Citicorp announced Tuesday it is eliminating 7,500 jobs worldwide over the next 18 months to become more efficient. Still, the specter of downsizing is receding. Those companies surveyed created an average of 110 new jobs while eliminating 57 in the year ending in June, while their payrolls grew 6.9 percent in same period.

"We had to go through a long dark night where there was an emphasis return, generic makers of such drugs would be frozen out of the market for up to five more years. On Tuesday, the Senate Appropriations health subcommittee which is pushing to complete work on its annual spending bill before Congress recesses for the year took time out for a hearing to examine the idea. The panel's chairman, Sen. Arlen Specter, called it "an idea worth considering," but made it clear after the hearing that approval is not imminent. "This is the beginning of a process of considering a very complex issue," he said.

Other lawmakers condemned the idea as a boondoggle for brand-name Drug giants offer twilight deal to nearly departed Congress Ice market-competitive generics and we'll pump profits into medical research RACINE Tenneco earnings up in 3rd quarter Tenneco Inc. announced Tuesday that its earnings per share from continuing operations grew 38 percent in the third quarter, from 45 cents last year to 62 cents. Operating income from Tenneco Packaging, a division which includes a plant in Waterford, increased 26 percent, from $85 million to $107 million. Revenues from that part of the business increased 17 percent in the quarter, exceeding the $1 billion mark for the second time, according to the company. Tenneco is a $7 billion manufacturing company headquartered in Greenwich, Conn, with 50,000 employees worldwide.

It includes two divisions Tenneco Automotive and Tenneco Packaging. RACINE Westgate theaters remodeling done Two auditoriums, with new stadium-style seating, will reopen at Westgate Cinema Friday, Marcus Theatres officials said Tuesday. For six weeks, workers have been remodeling the theaters to install tiered seating at Westgate, 4901 Washington Ave The company is converting about one-third of its auditoriums to the new plan. Marcus Theatres Corp. operates 297 movie screens in Wisconsin and Illinois.

It has 45 more screens under construction in Ohio and Wisconsin. NEW YORK Hilton's bid for ITT defeated Hilton Hotels chief said the company will not raise its hostile bid for ITT Corp. in what was seen as a concession to ITTs $9.8 billion agreement with Starwood Lodging Trust. Hilton chief executive Stephen Bollenbach told analysts in a conference call Tuesday that he cannot top Starwood's bid, which at $82 a share is 17 percent higher than Hilton's. STOCKHOLM, Sweden Stolen diamonds subject of probe A newly unsealed document says jewelers in Sweden bought diamonds stolen by the Nazis and smuggled into the country by an aristocrat, Swedish media said.

The matter is being examined by a commission formed this year to investigate Sweden's acquisition of Nazi gold, the commission chairman said. The statement by commission chairman Rolf Wirten came after a joint report by Swedish radio Tuesday. WASHINGTON Chinese herb may slow Alzheimer's Ginkgo biloba extract, a herbal medicine used for thousands of years by the Chinese, has been shown to slow the progression of Alzheimer's disease slightly in some patients, researchers report. In a study to be published today in the Journal of the American Medical Association, researchers say about a third of the dementia patients treated with ginkgo extract showed some improvement after 52 weeks when compared with a similar group of patients who took a placebo. Dr.

Pierre L. LeBars of the New York Institute for Medical Research, lead author of the study, said benefits from the treatment were modest and apparent only after about six months of taking the extract October 21, 1997 8.3 to be cut Third-quarter Income $1,067 Prior to charge 45 $558 million after-tax effect of a charge 1996 1997 Restructuring charges Include $496 million for severance benefits and $393 million for equipment and premises writedowns. APAVm. J. Castello It would create a "demonstration project" in which drug makers would pay 3 percent of the money they make from a particular drug to support biomedical research.

In return, they would receive up to five additional years of protection from generics. The provision could apply to any drug approved by the Food and Drug Administration in the past five years potentially dozens of products. Bristol-Myers Squibb wants to protect Taxol, a chemotherapy treatment for breast and ovarian cancer that brought the company more than $500 million in business last year. Taxol's exclusive market expires in December. additional, newly designed catalytic converters.

Most of the attention has been focused on fuel cells as a way to develop electric cars with much higher mileage, low emissions of pollutants, and long driving range. Fuel cells combine oxygen from the air with hydrogen to produce electricity, which, in turn, powers the car without the need of a cumbersome, limited-range battery. Researchers have been trying to find the best source for the hydrogen. The Arthur D. Little Co.

team for the first time found a way to extract the hydrogen from gasoline and still meet the requirements for putting the system into a vehicle. Other fuel cell research has focused on using natural gas, ethanol or methanol as a source of hydrogen. "This will blow the doors off of a battery-powered vehicle," Jeffrey Bentley, leader of the 30-member team, said in an interview. He said the key is that by using gasoline, cars will be able to use the existing system of gas stations already in place and not be limited in range. The next step is to attract investors "to bring this new technology to market," said Charles LaMantia, chairman of the company.

Bentley said that the researchers worked for five years to find a way to separate the hydrogen molecules from the carbon molecules in gasoline. IJMWA 8060.44 i Ulll'Jwt 139.00 Billions $1.0 llgJL High Low say big batteries for electric cars may be history US: 1 drug makers. "This special-interest deal is breathtaking in its audacity," said Rep. Henry Waxman, an author of a 1984 law that controls the way exclusive markets are granted to pharmaceutical makers. "It boils down to a simple but profitable quid pro quo for the beneficiary companies." Sen.

Richard Durbin, said the proposed amendment reminded him of a $50 billion tax break for the tobacco industry that was slipped into a bill just before Congress recessed for the summer. The bill passed, but when the provision became public embarrassed lawmakers were forced to undo it. i ffl Associated Press commercial production before 2010. Energy Secretary Federico Pena hailed the breakthrough which coincidentally came a day before President Clinton was to disclose a proposal to combat the global warm cm i But Jane Kramer, a spokeswoman for Bristol-Myers Squibb, cited a long list of patient advocacy groups, from breast cancer survivors to the Cystic Fibrosis Foundation, that support the proposal because it would provide research money for their causes. Under a variety of arrangements, drug companies are given exclusive rights to make drugs for a set period of time before generic versions can be marketed.

The proposal now being reviewed was first floated several weeks ago in a private meeting between lobbyists for Bristol-Myers Squibb and staff members of the House Commerce Committee. ing threat as "a technology that can play a significant role in reducing greenhouse gases." The chemical reaction between oxygen and hydrogen produces energy and leaves only water. The extraction of hydrogen from gasoline leaves carbon dioxide, but because of increased efficiency carbon emissions would be cut by 50 to 70 percent from conventionally powered cars. The fuel cell could produce cars that get up to 80 miles per gallon while cutting air pollution by 95 percent, the researchers said. In other recent developments seeking greater fuel efficiency by replacing the traditional internal combustion engine: Both Toyota and Daimler-Benz unveiled automobiles powered by fuel cells at the Frankfurt, Germany, auto show earlier this year.

Daimler-Benz hopes to have 100,000 Mercedes cars available with fuel cells by 2004. Each of the Big Three automakers Chrysler, Ford and General Motors have aggressive fuel cell research programs under way. Last week, Toyota announced it soon will sell a hybrid electric car that would use a small gasoline engine to recharge the battery, reportedly doubling gasoline mileage. And Honda Motor Co. said this week it has a gasoline engine that can compete with the electrics and cut pollution to nearly zero by using WASHINGTON (AP) -Prominent drug companies are making a last-minute push in Congress to forestall cheaper generic versions of some popular medicines that bring them hundreds of millions of dollars.

Critics say the effort illustrates how the end of a congressional session is prime time for lobbying. The drug companies, led by New Jersey-based Bristol-Myers Squibb, are proposing to pay the government to extend their market monopolies on best-selling brand-name drugs such as the cancer treatment Taxol and the allergy medicine Claritin. The companies' money would be used for research on cancer, heart disease, AIDS and other diseases. In Researchers WASHINGTON (AP) -Researchers claimed a breakthrough Tuesday they said could lead to virtually pollution-free electric cars that drivers could refuel at the corner gas station. No need anymore for big, range-limiting batteries.

The power process, using a fuel cell and hydrogen extracted from gasoline, is the latest in a string of technology advances that have surfaced in recent months, all aimed at building cleaner, more efficient car engines. In this version, a team of researchers at Arthur D. Little a Boston-based energy consulting firm, came up with a fuel cell that produces energy by combining oxygen and hydrogen from gasoline. The company said it would work with major automakers to develop the system in an electric car, cutting auto emissions by 95 percent while doubling fuel efficiency. Officials estimated commercial production as early as 2005.

Some remaining challenges include reducing the cost, getting the system smaller to fit under a car's hood and developing more power than the laboratory model, company officials said. A spokesman for Chrysler which has worked with the research team, said costs would have to be cut drastically for the engine to compete with current cars. Even mass produced, the technology would cost $30,000 per car now compared with VTD Jeff Bentley, left, vice president of Arthur D. Little and company chief executive officer Charles La Mantia pose Monday with their newly developed technology gasoline fuel cell at their Cambridge, facility. $3,000 for conventional cars.

But, said Chrysler spokesman Tony Cervone, the automaker anticipates having a prototype car using the technology in less than two years and expects to cut costs enough to have WALLSTREET WRAP UP Blue chip stocks fuel market rally 8090.40 Highest close 790941 toy6.m I 1 7197 8197 9197 Nama Dtv PE Laat Chg Chg AbtUb 1.08 24 63Vie 25.5 AdvBcp .40 44 55 71.7 APree 25 25 25.0 Amerttch 2.26 17 68 12.2 ApWPw .12 23 67 1 Vie 71.0 BancOrw 1.52 21 53'Vw 24.9 CaseCp .20 14 69Vw 7 28.3 Chryslr 1.60 9 371 12.5 Cireon 60 16' Vt 5.7 EmrsnEIS 1.08 23 56 16.2 FtFnCpa .60 18 37'Vte 19252.4 Firstar I .84 19 37 42.4 Fiaerv 29 45 24.1 QnMag 30 21 13 ...111.5 GoMBka 11 1A 1.1 JWA 17 28.3 LeeEnt i2 21 28' 22.3 Undbrg 32 13 15 50.0 Marcus 32 18 28 -1V 34.7 Marshlia .80 22 53 1 54.2 Modina .76 18 357 7 34.1 Schultzi 2a 17 16V -Via 71.3 SnapOn .84 19 48 1V 291 SuHDnt 20 28 26 103.8 TOW 6 Tannco 1.20 25 50V -1 Vn 10.9 Textron 1.00 20 62 -Vie 33.2 TWnOa .76 11 32 1 51.4 WICOR 1.72 18 44? 23.9 WiacEn 1.64 21 264 8650 8250 7850 7450 7050 6650 6250 10197. 11197 21, 1997 990 940 890 840 790 740 1019? 11197 AP NEW YORK (AP) Stocks rallied Tuesday as IBM, Citicorp and Chase Manhattan helped make last week's profit worries and the resulting market sell-off a distant memory. The Dow Jones industrial average rose 139.00 to 8,060.44. Combined with Monday's 74-point gain, that was more than enough to wipe out last week's downturn. Broader indicators also repaired all or most of the remaining damage from last week's drop, putting several back within striking distance of record territory.

Late Monday's better-than-expected earnings reports by IBM and Microsoft quickly counteracted the disappointment over last week's unimpressive profit showings by computer-industry leaders such as Intel, Seagate Technology and Sun Microsystems. IBM, which reported a 6 percent improvement in its third-quarter profits, surged 7 1116 or the equivalent of 29 Dow points to 105 316. Likewise, Microsoft led the Nasdaq advance after reporting that its profits for the July-September period rose about 8 percent, also surpassing analyst forecasts by a small margin. "Last night's reports helped people get through the fear that maybe there's something wrong in technology. Demand is very strong," said Peter Canelo, U.S.

Investment strategist at Morgan Stanley Dean Witter. Canelo said that even with last week's disappointments, third-quarter profits are on track to beat year-ago levels by a healthy 12 percent margin. The Dow also drew a boost from its financial services issues, which rallied after some healthy third-quarter showings by Citicorp, Chase Manhattan, and Wells Fargo. J.P. Morgan rose 3 34 to 122 12 as the Dows second-biggest gainer.

Citicorp, which also announced plans to cut costs by eliminating 7,500 jobs, jumped 5 516 to 144 316, Chase rose 2 18 to 123 1116, and Wells Fargo rose 22 516 to 314. another Dow component, rose 2 14 to 49 34, its second strong session after early Monday's forecast-beating results and appointment of a new chief executive. Advancing issues outnumbered decliners by more than a 2-to-l margin on the New York Stock Exchange, where volume totaled a heavy 581.79 million shares as of 4 p.m., up sharply from Monday's sluggish pace The Standard Poor's 500-stock list rose 16.67 to 972.28, slightly more than 10 points from record terrain; and the NYSE composite index rose 7.93 to 510.19, just 4 points away from new highs. The. Nasdaq composite index rose 27.09 to 1,712.54 as Microsoft rose 6 to 138 12.

The Russell 2000 index of smaller companies rose 5.08 to 458.93, and the small-company dominated American Stock Exchange composite index rose 5.78 to 712.36. ill A 972.28 II High I 97Z56 I Hipheaidnae I 16.67 I LOW 955.61 October 7.1997 7197 8197 9197 arf aTn.af a 4 A 4. eti4 4 'L.